CCP approves another merger

ISLAMABAD   -   The Competition Com­mission of Pakistan (CCP) has approved a merger that will see a Korean com­pany investing in Pakistan’s hydropower sector. The transaction involves Korea-based M/s. DL E&C Co. Ltd (acquirer) acquiring shares in Pakistani company M/s Mira Power Limited (MPL), which operates the 102 MW Gulpur hydropower plant, from M/s. DL Hold­ings Co. Ltd (seller). The acquirer is a Korean reg­istered company, which mainly operates as a con­struction company, and also provides engineering, procurement, and con­struction solutions in South Korea and internationally. On the other hand, MPL is a public limited company (unlisted) existing under the laws of Pakistan. MPL is a subsidiary of Korea Energy (KOEN), a South Korean based electricity generating company. MPL has been successfully gen­erating power since 2020 in Pakistan via the 102 MW Gulpur hydropower plant located in Kotli district, Azad Jammu & Kashmir. MPL had submitted a pre-merger application to the CCP pursuant to Section 11 of the Competition Act, 2010. Both the acquirer and seller entered into a share purchase agreement for the sale of shares back in July 2023. In its com­petition assessment, CCP determined that MPL’s esti­mated share in the market is less than 1%, and this transfer of ownership will not result in any modifica­tion of the MPL`s presence in the market. The pro­posed transaction will not lead to the dominance of the Acquirer in the relevant market post-transaction, and therefore, the merger was authorized. Moreover, it is a significant vote of confidence of international investors’ appetite for Pow­er Sector in Pakistan.

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